Given that the new production was wasteful, it doesn’t reduced the costs of the goods relevant to consumers. As such, inflation does not in fact fall, even if some quantifications which incorporated newly dug and refilled holes indicate that it did fall. Eventually, in MMT, the answer is that the government can print revenue to spend. The notion of the all-natural price of unemployment is that even healthier economies have men and women who are hunting for jobs for the above two reasons.

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